VIOD holds corporate governance and market upgrade event amid new AGM season

Panellists at the seminar

This was the first event in a corporate governance program, aligned with ESG and aimed at upgrading Vietnam's securities market from a frontier market to an emerging market. The seminar attracted approximately 700 participants from over 350 listed companies, public companies, state-owned corporations, and private enterprises.

2024 marks the first year of implementing the Securities Market Development Strategy until 2030, with the upgrading of the securities market being a central policy directed by the government, the prime minister, and relevant ministries.

With joint efforts from the SSC and related ministries and sectors, Vietnam has made significant improvements and achieved important criteria according to assessments by international rating agencies and financial institutions. However, to elevate the securities market from a frontier to an emerging market, there is a need to focus on improving two crucial issues: pre-funding requirements and foreign ownership limits.

According to Vu Thi Chan Phuong, chairwoman of the SSC, besides these technical aspects, upgrading the market from a frontier to an emerging market also depends on the actual experience of foreign investors participating in the stock market. In other words, this goal can only be achieved with the collective effort of consulting firms and the listed business community in Vietnam.

“Companies in the stock market need to commit to and implement action plans to enhance ESG-aligned corporate governance practices in line with international norms and regional trends, as well as transparent, quality information disclosure, including English-language reporting. Regarding improving the quality of disclosure information, 2024 is also the year the Ministry of Finance plans to amend legislation detailing the implementation of certain provisions of the Securities Law and related circulars,” she said.

Furthermore, as each enterprise enhances its corporate governance capacity and clarifies its ESG strategy, it increases investor confidence and contributes to the consistent upgrading of the market from a frontier to an emerging market. This also contributes to improving Vietnam's scores/rankings on the ASEAN Corporate Governance Scorecard (ACGS).

To support these important tasks, VIOD, as the SSC's professional partner in the ACGS programme and HOSE's professional partner in implementing and evaluating corporate governance linked to ESG, has developed the Corporate Governance & Market Upgrading programme, including forums, seminars, and training programmes on ESG-aligned corporate governance and necessary changes in 2024 concerning corporate governance and information disclosure.

"For shareholder meetings to fully realise their role, boards of directors and enterprises need to go beyond compliance, focusing not only on organising the right number of meetings at the right time but also shifting from quantitative to qualitative perspectives, focusing on the desires of shareholders and investors,” Phan Le Thanh Long, CEO of VIOD, said. “It is hoped that VIOD's insights, along with those of the commission and the exchanges, will help companies better understand the benefits of organising more innovative and effective shareholder meetings aligned with market changes and best corporate governance practices internationally, thereby continuing to implement and enhance corporate governance practices, contributing to market upgrading overall."

During the forum, representatives from enterprises were updated on changes on legal regulations regarding information disclosure and the impacts on the organisation of their 2024 shareholder meetings.

Additionally, within the framework of the event, representatives participated in a discussion, highlighting existing issues and demonstrating the importance of organising shareholder meetings closely following new market updates domestically, regionally, and globally in terms of regulations and best governance practices from diverse perspectives including regulatory bodies, enterprises, and shareholders.

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SABECO receives VIOD certificate for corporate governance best practices Saigon Beer - Alcohol - Beverage Corporation (SABECO) has been honoured as having a Board of Directors that is committed to corporate governance best practices by the Vietnam Institute of Directors (VIOD).

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